Bitcoin Cost Basis Distribution Reveals Strong Demand At $97K – Can BTC Hold?
Bitcoin has had a whirlwind few days, hitting a new all-time high (ATH) last Tuesday before falling a massive 15%. This period of heightened volatility has divided investors, with some expecting continued gains for stocks and others bracing for more losses. The market is closely watching Bitcoin’s ability to regain bullish momentum.
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Top analyst Ali Martinez highlighted key data from Bitcoin’s cost base distribution, pointing to $97,000 as a key support level. Martinez emphasized that holding this level is critical for Bitcoin to maintain its upward trend and resist a deeper correction. However, Bitcoin’s price action remains uncertain as it struggles to break the psychological barrier of $100,000.
While many investors see the recent correction as a healthy reset after Bitcoin’s meteoric rise, the failure to push higher could signal a longer consolidation phase. As Bitcoin trades near key levelsThe next few days will be crucial in determining whether the stock will continue its climb to new highs or face more headwinds.
Bitcoin remains above key demand
Bitcoin is currently holding steady above key demand levels around $97,000, providing a beacon of hope for bulls following recent volatility. This stabilization came after a brief test of lower demand at $92,000, which increased the market’s ability to absorb selling pressure. While the short-term recovery is encouraging, prices are still at a critical point that could determine its trajectory heading into the new year.
Martinez recently shared insights into Bitcoin’s cost base distribution, highlighting the importance of the $99,000 to $97,000 range. His data highlights this area as Bitcoin’s most important support threshold and a key line for the current uptrend.
However, Martinez warned that there could be downside risks if Bitcoin fails to hold in this range: “We really don’t want this level to become resistance.”
As Bitcoin consolidates near these key levels, sentiment across the market remains indecisive. Bulls are eager to see BTC regain momentum and push towards all-time highs, but psychological resistance around $100,000 remains high. Meanwhile, bears believe the recent pullback could be a sign of a larger correction on the horizon.
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As the year draws to a close, the next few days will be crucial. As market participants seek clarity, Bitcoin must hold this key support area or risk losing the bullish structure. Whether the next big move is up or down will largely depend on how Bitcoin reacts within this price range.
BTC tests liquidity
Bitcoin is currently trading at $97,000, showing resilience after bouncing off local lows of $92,000. The rally highlights strong demand at lower levels of the market, reinforcing the current bullish narrative. The price structure remains above $97,000, suggesting that BTC is well-positioned to rally towards ATH again.
However, the $100,000 psychological barrier emerges as the next major hurdle for the bulls. This level has proven difficult to overcome and previous attempts have failed. A successful break above $100,000 in the coming days could reignite bullish momentum and set the stage for Bitcoin to reach new highs, restoring investor and trader confidence.
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On the other hand, failure to break through this key resistance could trigger a less favorable scenario. If Bitcoin struggles to break $100,000, market sentiment could falter, leading to increased selling pressure. In this case, Bitcoin could face another downturn, testing key support levels once again.
Featured image from Dall-E, chart from TradingView
